Details of the drilling results are as follows:
In the Peace River Arch focus area, Titan has drilled three wells (100% WI), resulting in two successful, multi zone gas wells. These wells are deliverability tested and will be tied in as soon as possible at a combined, initial rate of 175 boe/d, net to the Company. The standing gas well acquired with the Gordondale property acquisition will also be tied in and will add an additional 30 boe/d of production. As a result of the recent drilling success, Titan has identified a number of follow up locations on Company lands to fully exploit both discoveries.
Titan is also continuing its land acquisition strategy in the Northwest Alberta focus area in preparation for a significant winter exploration drilling program.
In southwest Saskatchewan, on lands acquired in the Shawnee purchase, Titan has participated in the drilling of three wells (0.66 net), resulting in 1 successful horizontal oil well (0.22 net), 1 potential horizontal oil well (0.22 net), and one D&A vertical well (0.22 net). The successful oil well was drilled horizontally into a mature oil pool in SW Saskatchewan to target undrained attic oil reserves. The well swabbed tested oil at rates exceeding 30 bbls/hour and the Company expects to place the well on production at approximately 120 bbls/d (25 bbls/d net) to maximize recovery. The third well (0.22 net), also a horizontal well, has recently been drilled and will be evaluated in the coming week.
Titan is continuing to prepare a step out exploration and development drilling program to exploit other opportunities identified through its technical review of the recently closed Shawnee acquisition. Titan expects to drill at least 6 wells between 30% and 100% working interest in the fourth quarter 2004. Several workover and recompletion activities are also planned.
Much of the year to date has been spent building the foundation for future growth and Titan is encouraged with its results and progress to date. The acquisition of 1075264 Alberta Ltd. and Shawnee Oils Inc. will provide Titan with a solid asset base from which to grow its reserves and production. With the closing of its recent $5.5 million private placement, Titan is well positioned financially. Titan is currently evaluating a number of exciting new prospects and is working to assemble a significant land position in its key exploration areas. During the third and fourth quarters of 2004 and into 2005, Titan expects to undertake an active drilling program. Titan has initially budgeted to drill 13 (9 net) wells in 2004 at a cost of approximately $4.7 million. To date, Titan has drilled or participated in 6 wells, resulting in significant production gains for Titan. Titan's targeted exit rate for 2004 is 800 boe/d. In addition to this active drilling program, Titan continues to evaluate acquisitions that are synergistic to the Company's growth strategy and existing operations.
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